The coronavirus pandemic is projected to widen economic performance among global economies as well as income classes within a country, a report by South Korea’s central bank said Monday. “The polarization in economic growth among global economies has been observed between developed and developing nations in how they have been dealing with quarantine measures, their fiscal capacities,” the Bank of Korea said in its regular report on economic issues. “Economies with stro

With a new wave of coronavirus infections gripping the nation, South Korea’s economy this month faces growing uncertainties, the Ministry of Economy and Finance said Friday. In its monthly economic report, called the “Green Book,” the ministry has upgraded its concerns on Asia’s fourth-largest economy by a notch, saying that the uncertainties are “expanding.” It has previously said that the uncertainties were “continuing” in the reports released i

Financial authorities on Wednesday ruled out Big Tech firms Naver and Kakao as subjects to one of the “three fair economy bills,” designed to rein in dominance of conglomerates and add transparency to corporate governance here. “At the moment, Kakao and Naver do not meet the standards,” Financial Services Commission Vice Chairman Doh Kyu-sang said in a briefing of related ministries for the revised bills. Companies with two or more financial units and total assets of

South Korea’s money supply saw further growth in October, as businesses and households continued its rush to secure funds amid the COVID-19 pandemic, central bank data showed Tuesday. The country’s M2 – a yardstick for the nation’s cash, checking deposits and other near money deposits – gained 9.7 percent on-year and 1.1 percent on-month to 3,150.5 trillion won ($2.8 trillion) as of end-October. The 1.1 percent or 34.7 trillion won on-month gain is the second-lar

Citibank Korea on Monday said it would pay partial indemnities to local businesses that signed currency-linked derivatives sold by the bank more than a decade ago. The decision was made during a board meeting held in an apparent response to the financial watchdog’s arbitrary recommendation last year to compensate the firms that had faced losses from KIKO -- or “knock-in, knock-out” -- contracts. “Citibank Korea has been reviewing compensation for firms that have been

Woori Financial Group vowed Friday to go carbon neutral by 2050 in line with South Korea’s vision of becoming a net zero carbon society, the group said Sunday. The first steps towards the goal would be achieving and implementing “coal-free finance,” launching a special team for environmental, social and governance tasks and establishing a committee formed of subsidiaries to discuss ESG-related strategies. The chief executives of Woori’s subsidiaries have decided to hal

   The Korea Herald is publishing a series of special reports on the glass ceiling in the financial industry, focusing on South Korea’s market compared to other major economies. Funded by The Korea Press Foundation, the series will evaluate where Asia’s fourth-largest economy stands in terms of gender equality, will reflect on changes being made and will explore ways to boost inclusion in the sector. -- Ed. Kim Ji-youn was filled with her own expectations of building a

South Korea’s current account surplus, a key barometer of the nation’s trade, surpassed $10 billion for two consecutive months and hit a three-year high in October, the central bank said Friday. The surplus increased 48.9 percent on-year to $11.6 billion in October on the back of recovering exports, despite the coronavirus pandemic, according to the Bank of Korea. It marked the largest surplus since September 2017, when the corresponding figure stood at $12.3 billion, and the t

South Korea has decided to invest $9.8 million in green and digital projects in developing nations through the World Bank’s Korea Green Growth Trust Fund, the Ministry of Economy and Finance said Tuesday. The KGGTF, launched in 2011, is a Korean government-financed trust fund that has helped more than 100 green growth programs in WB lending, according to the ministry. The latest investment will involve 23 developing nations and projects in digital, green and health care fields. It aims t

South Korea’s central bank said Monday that the percentage of 50,000 won ($45.26) notes returned to the bank plummeted to a record low due to sentiment surrounding the COVID-19 pandemic. The return rate fell to 25.4 percent for the first 10 months of this year, the lowest level since the notes began circulating in June 2009 and 39.4 percentage points lower than for the same period last year, the Bank of Korea said in a report. The BOK issued 21.9 trillion won worth of 50,000 won notes

Hana Bank, a major South Korean lender, has been fostering cross-border connections with overseas firms and gearing up to take its online payment platform global. The firm’s holding group Hana Financial Group hosted a consortium of its Global Loyalty Network platform on Nov. 24, attended by 100 officials from 30 global banking groups, distributors and other financial institutions from 10 nations including China, Japan, Thailand, Russia, the US and the UK. The aim of the GLN is to bec

Woori Bank has been upholding environmental, social and governance values through issuance of ESG bonds and supporting green projects here. The lender won the Prime Minister Awards at the 2020 Global Green Management Excellence Awards co-hosted by Ministry of Environment and the Ministry of Trade, Industry and Energy. The award was created in 2006 to shed light on those that contribute to state-planned green projects. Woori’s issuance of sustainable bonds and financial support for rene

The number of apartments in Seoul purchased by South Koreans below the age of 30 more than doubled on-year in the first 10 months of this year, data from the Korea Appraisal Board showed Sunday. Though Seoul apartment transactions for people in all age groups increased noticeably in the same period, those in their teens and 20s bought 29,287 new homes in the January-October period, compared with 14,809 homes last year, data showed. People under 30 bought some 40 percent of all apartments purc

The number of South Koreans that flocked to banks to open new overdraft accounts surged in recent days, following the financial authorities’ announcement to tighten lending rules in a bid to curb the nation’s growing household debt, industry data showed Sunday. The five major banks here -- KB Kookmin, Shinhan, Hana, Woori and NH NongHyup -- saw their customers open a combined average of roughly 5,500 accounts daily in days following Nov. 20. The figure stood at 6,324 on Nov. 20 and

South Korea’s central bank chief said Thursday that the worst for the nation’s economy is over but it is still not on the road to recovery, while the bank held the key interest rate steady at a record low. “The high uncertainties stemming from the circumstances surrounding the possible early commercialization of the vaccine and the spread of COVID-19 around the globe have led us to believe in the need to maintain the current (dovish) stance,” said Lee Ju-yeol, governor o

Household expenditure on alcohol and cigarettes hit a new high in the July-September period, data showed Wednesday, with the “stay-at-home” situation amid the coronavirus pandemic apparently fueling the spending. Monthly spending on tobacco and liquor by local households of two or more people gained 10.7 percent on-year to an average 42,980 won ($38.70), in the three-month period, data compiled by Statistics Korea showed. The figure marks the largest since the government started

In line with the digitalization of industries accelerated by the COVID-19 pandemic, the chief of the nation’s intellectual property office vowed Tuesday to “open an era of digital IP” via systemic upgrades. “In order to resolve key issues tied to protection of core values of the digital era, we will update laws that can bolster IP protection in the process of data manufacturing, transfer and utilization and address issues surrounding creative rights of inventions by art

The number of multiple-home owners with five or more homes hit a record high last year, while the number of nonhomeowners also grew, data showed Monday, reflecting an intensifying housing market polarization in South Korea. The data came amid growing doubts on the effectiveness of the Moon Jae-in administration’s series of real estate measures focused on levying heavier taxes on multiple-home owners and adopting stricter loan rules.  Owners of five or more homes increased 0.75 perce

KB Financial Group labor union’s attempt to convince shareholders to appoint two outside directors recommended by them fell through Friday, deflating the union’s yearslong efforts to enter the boardroom. Following a shareholders meeting held in the morning, KB Financial Group said that the appointment of outside director candidates Sustinvest CEO Ryu Young-jae and Seoul National University environmental studies professor Yun Sun-jin was “rejected” based on the votes cas

South Korean banking groups are set to tighten lending rules for overdraft accounts, lowering borrowing limits amid government efforts to put a brake on the nation’s fast-growing household debt, industry data showed Friday. The five major commercial banks here -- KB Kookmin, Shinhan, Woori, Hana and NH NongHyup -- have started lowering limits for their key overdraft account products designed for “high-income individuals and professionals” from an average 200 million won ($179,